forextrad cashback forexgwebsiteonline forex trading site also what we often hear the news said GDP, officially, GDP is a country or region in a certain period of time (a certain period of time generally refers to the annual or quarterly), through the monetary performance of the total value of all goods and services, which mainly reflects the overall economic good or bad of a country or region GDP includes consumption , private investment, government spending and net exports Here you can remember a formula: GDP = C1 + I + C2 + XC1 indicates consumption; I indicates dead investment; C2 indicates government spending; X indicates net exports Generally speaking, whether the countrys economy is prosperous, whether the national income increases, the ability to consume will be shown in the GDP above a countrys GDP A large increase, then the economy of the above three are positive direction of development but does not mean that this development must be good generally to a degree, the countrys central bank will raise interest rates, tightening the money supply, the countrys economic performance and rising interest rates will make the countrys currency more attractive, then the demand for the countrys currency will increase, then the currency appreciated Conversely, GDP has negative forextradingbrokerwebsite, indicating that the economy In a state of recession, the national consumption capacity declined, the demand for the countrys currency also fell, the countrys currency depreciation is generally high economic growth will promote the exchange rate of the national currency rose, and vice versa fell It is important to note that GDP is published in the form of total and percentage rate of growth figures are positive growth, showing that the countrys economy is in the expansion phase; conversely, if the growth figures are Negative numbers, showing that the countrys economy is in recession We take the United States as an example to illustrate: The third week of each month, the United States announced GDP data information if compared with the same period last year, the value of the increase, then the current economic development accelerated, in favor of the dollar appreciation; if compared with the same period last year, the value of the decrease, then long indicates that the current economic development slowed down, the dollar has depreciation pressure If the United States GDP data is published in the form of total and percentage rate of growth is positive growth, showing that the countrys economy is in the expansion phase; conversely, if the growth figure is negative, showing that the countrys economy is in recession. nbsp; If the U.S. GDP growth rate of 3%, it means that in an ideal state of the data at the end of August 2017, the GDP growth rate reached 3%, this data alone let the political performance of the relatively declining President Trump to regain confidence because the U.S. GDP growth rate to 3% is the ideal state, indicating that economic development is healthy if the growth rate is higher than the value, it means that there is inflationary pressure If the growth rate is lower than the value, it means that the economy is slowing down, and there are signs of recession For example, in the mid-to-late 1990s, the average annual growth rate of U.S. GDP was 4.1%, and most countries in the eurozone GDP growth rate was around 2%, such as Frances average annual GDP growth rate of 2.2%, Italys average annual GDP growth rate of 1.2% This has prompted the euro to decline against the U.S. dollar since its launch in 1999, from 1.1900 to 0.8230 in less than two years, a depreciation of 30%.
